We’re reducing our minimum Interest Cover Ratio for lower rate tax payers
Since confirmation of the PRA guidance on BTL Underwriting Standards, we’ve been developing the capability to segment our minimum Interest Cover Ratio (ICR) requirements for higher and lower rate tax payers.
So, from Wednesday 17 May 2017, we’re reducing the minimum ICR from 145% to 125%, for zero and basic rate tax payers.
To qualify for the lower 125% ICR, the maximum portfolio size upon completion of the new application is set at three properties. There is no change to policy for landlords who meet the higher 145% ICR.
Learn more here, including details of the income proofs we’ll need to see.
Need to get in touch?
If you have any questions about these changes, please contact your BDM or yourDedicated Broker Support team through Broker Chat.
